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Top five myths about Ethereum

By Guardian Nigeria
21 July 2022   |   8:05 pm
The open-source blockchain Ethereum has been clouded by several myths since its creation by Vitalik Buterin in late 2013. This digital asset is entirely decentralized, and decentralized operations lie at the core of this cryptocurrency. The decentralization has wholly altered the way of doing business by offering new financial security and transparency concepts. Here are…

A representation of virtual currency Ethereum and U.S. One Dollar banknote are seen in front of a stock graph in this illustration taken February 19, 2021. REUTERS/Dado Ruvic/File Photo

The open-source blockchain Ethereum has been clouded by several myths since its creation by Vitalik Buterin in late 2013. This digital asset is entirely decentralized, and decentralized operations lie at the core of this cryptocurrency. The decentralization has wholly altered the way of doing business by offering new financial security and transparency concepts. Here are a few myths surrounding Ethereum. Ethereum became the most modern trend in the crypto world, and you can purchase them using the ethereum trader

The Collusion of the People is Impossible
Pool operators will only include transactions they want to process in the blocks. One of the primary objectives of modern mining that many pools have is to provide the distributed generation of the blocks. About 60% to 70% of the total Ether network hash rate only belongs to four or five of the most popular tools. 

Ethereum does not Have Errors and Failures
People say that this electronic money does not have errors or failures are central common myths surrounding this virtual money. However, that is not the case because, just like any other currency, Ethereum is not infallible. The fact is that right from its creation, Ethereum has tried to shield itself from the different attacks that may exist. Ethereum’s strong foundation in intelligent contracts makes sure that every user shoulders the responsibility of protecting the transactions they make. 

The responsibility of protecting transactions is also one of the sole reasons people would never want Ethereum to fail.

Ethereum’s Protection Against Attacks
Ethereum has three vital elements forming the basis of these characteristics. And these are attack resistance, fault tolerance, and resistance to cooperation. The crucial point to note is that even if one of these fails, the system could become a decentralized entity. This decentralization will make it difficult for the participants of the decentralized systems to collude to act so that they benefit from them at the expense of other users. Governments and corporations collude to help themselves, which will, in turn, be harmful to other customers. 

Participants cannot conspire with malicious intentions to benefit at the expense of others if the cryptosystem is adequately strong.

Wallet Owners Cannot Access Fund Privately
The unique characteristic of cryptocurrencies is that users cannot transact with funds or participate in such transactions where they do not possess ownership of the funds. Token systems have schemes in place to guarantee the same. Here, each agent needs to hold the correct private key and steer clear of double transactions and chances of theft. They can allow transactions and need to comply with the requirements of the proceeding agent.

Ether Uses More Energy to Mine Than Bitcoin
Ethereum uses less energy than Bitcoin to keep the secure network, primarily through mining. A platform such as digiconomist estimates that Ethereum miners currently consume 61TWh/year, while Bitcoin miners use 146TWh/year. However, the Ethereum 2.0 upgrade to the proof of stake network will make this digital asset about 2 000 times more energy-efficient based on the conservative estimates, which will result in a reduction of at least 99.95% in total energy use.

Precious Stones backs Ethereum
The argument that precious stones back this digital asset is false. Ethereum doesn’t have the backing of any form of precious stones or gold-like substances. The Ethereum symbol, the octahedron, represents the element of air and is linked to the heart chakra. And this is the center of love and compassion. It has nothing to do with precious stones.

Conclusion
 By now, one has quickly gained a fair idea about the five common myths of Ethereum from the information above.